IFC and BTG Pactual Forge $1B Partnership to Advance Sustainable Growth in LATAM

By combining IFC’s global reach with BTG’s deep regional expertise, the partnership seeks to catalyze sustainable investment pipelines across Latin America.


Devdiscourse News Desk | São Paulo | Updated: 29-08-2025 11:46 IST | Created: 29-08-2025 11:46 IST
IFC and BTG Pactual Forge $1B Partnership to Advance Sustainable Growth in LATAM
IFC and BTG Pactual will collaborate on training, capacity building, and policy development, helping scale innovations that can be replicated across sectors and borders. Image Credit: Wikimedia
  • Country:
  • Brazil

 

The International Finance Corporation (IFC) and BTG Pactual, Latin America’s largest investment bank, have announced a strategic partnership to drive sustainability and development initiatives in Brazil and across the region. The collaboration, formalized through a Memorandum of Understanding (MoU), aims to mobilize as much as $1 billion in joint investments and private capital by 2028, signaling a major commitment to financing climate resilience, social development, and the green economy.

Mobilizing Capital for Transformative Projects

The partnership is designed to channel resources into high-impact areas, including:

  • Nature-based solutions and the Amazon bioeconomy, to support conservation while generating sustainable livelihoods.

  • Infrastructure and private equity funds, focusing on green and inclusive growth.

  • Portfolio companies and development projects aligned with sustainability and climate goals.

Under the arrangement, BTG Pactual will identify opportunities for co-financing, equity participation, and fund investments. Meanwhile, IFC will bring its global development finance expertise, offering both financial solutions and technical advisory services.

Together, the two institutions plan to invest in projects that not only generate financial returns but also deliver measurable social and environmental benefits.

Commitment to Sustainability and Long-Term Value

This collaboration builds on both organizations’ shared vision of sustainable development as a catalyst for economic growth and stability. By leveraging IFC’s Environmental and Social Performance Standards, the partnership will ensure that investments meet robust international benchmarks, mitigating risks while maximizing impact.

According to Roberto Sallouti, CEO of BTG Pactual, the partnership represents a transformative step forward: “The allocation of these resources will be done carefully, adhering to technical and financial criteria, so that the investments made available by IFC will be used to promote the changes we need for a more sustainable economy.”

IFC’s Regional Focus

For the IFC, this partnership is part of a long history of engagement in Brazil and Latin America. Since 1957, the corporation has been investing in Brazil’s private sector to address critical challenges related to urbanization, social inclusion, productivity, competitiveness, and natural resource management.

Alfonso García Mora, IFC Regional Vice President for Europe, Latin America and the Caribbean, underscored the broader implications of the partnership: “This partnership with BTG Pactual is a testament to our commitment to fostering sustainable private sector development and job creation in Latin America. The private sector can and should be a critical player in advancing the climate agenda and driving transformative initiatives that improve lives and promote economic growth.”

Knowledge Sharing and Capacity Building

Beyond mobilizing capital, the partnership will involve knowledge-sharing and best practices exchange. IFC and BTG Pactual will collaborate on training, capacity building, and policy development, helping scale innovations that can be replicated across sectors and borders.

The initiative reflects a growing trend in development finance: pairing international development institutions with regional private-sector leaders to accelerate impact. By combining IFC’s global reach with BTG’s deep regional expertise, the partnership seeks to catalyze sustainable investment pipelines across Latin America.

Looking Ahead

With the climate crisis, deforestation, and social inequality posing persistent challenges across Latin America, the IFC–BTG Pactual alliance arrives at a pivotal moment. The targeted investments are expected to generate long-term economic value while contributing to global sustainability goals, including climate action, biodiversity protection, and inclusive growth.

By 2028, if fully mobilized, the partnership could stand as a benchmark for how development finance and private capital can jointly deliver scalable, transformative solutions, reinforcing Latin America’s role as both a guardian of critical ecosystems and a driver of sustainable economic opportunity.

 

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